White Mountains to sell Bamboo to CVC
White Mountains has signed a definitive agreement to sell a controlling interest in Bamboo Insurance, an MGA offering coverage for homeowners in California and Texas, to funds advised by CVC Capital Partners. The transaction values Bamboo at $1.75 billion.
White Mountains expects the transaction will result in a gain of approximately $310 to its book value per share and net cash proceeds of approximately $840 million. White Mountains will retain an approximately 15% fully-diluted equity stake in Bamboo post-closing, valued at $250 million based on the transaction.
White Mountains announced a deal to acquire a majority stake (70%) in Bamboo in October 2023. As part of the deal, White Mountains invested ~$285 million in Bamboo.
The transaction is expected to close by the end of the fourth quarter of 2025.
“It has been our privilege to partner with Bamboo. Its rapid growth is a testament to the value and innovation it is bringing to the homeowners’ insurance market.” – Manning Rountree, Chief Executive Officer of White Mountains.
“This transaction is a win-win for both White Mountains shareholders and Bamboo management and employees. We want to thank John and the entire Bamboo team for all of their hard work, and we look forward to continued partnership with them and CVC.” – Liam Caffrey, President and Chief Financial Officer of White Mountains.
“We are extremely gratified by the success of Bamboo during our ownership. This is a prime example of our approach to partnering with highly talented management teams in the insurance sector and supporting them with value-added resources and expertise to drive superior results for all stakeholders. We look forward to working with our new partners at CVC to support Bamboo’s next chapter of growth.” – Chris Delehanty, Head of M&A of White Mountains.
“We thank the White Mountains team for their valuable guidance and support throughout our partnership. They have been instrumental in making our vision a reality. This milestone represents the result of years of dedication and hard work by the entire Bamboo team and was only achieved with the support and confidence of our valued partners. We could not be happier with the outcome. While I’m incredibly proud of the growth we’ve achieved while staying true to our client-first values, we’re still in the early innings. We are thrilled to welcome CVC on as our new majority capital partner alongside White Mountains as we embark on the next phase of Bamboo’s growth journey.” – John Chu, Chief Executive Officer of Bamboo.
“Bamboo is a one of a kind asset, deploying differentiated technology, speed and underwriting to serve the insurance needs of homeowners in California and Texas.” – Daniel Brand, Partner at CVC.
